I feel that execs and administrators have become parasites.
How could you organise large corporations and institutions so that they don't need C suite executives? I find it impossible to believe that anyone actually does $8M plus stock and bonuses worth of work.
When it comes to workers, the deep economic thinking is that money isn’t something that drives performance. When it comes to the back-scratching world of corporate governance, cash is king.
The public sector demonstrates that you don’t need to pay excessive salaries for many types of executive workers. The most senior generals in the military make $300k. The most senior executives of government agencies tend to make $150-250k depending on geography. The no-name CEO of some small hospital network makes $3M.
A tax system like the one that lifted the families of these rich trolls before they lobbied to tear it all down.
Watch us make tons of money off technology that was initially funded by government because the rich, as usual, didn’t want to invest in it themselves.
IBM got gifted what would today be billions in handouts by being the only seller of machines produced originally by taxes.
It’s a mathematical fact how that all shook out for that entire generation: benefited immensely from government socialism. Then lobbied to take it away from the next generation, acting instead like a grifting middle man on their agency.
Let’s build a world that does that handout shit for everyone.
Do we build iPhone because of markets or because holy shit this is cool?
Fuck these outdated semantics for what we do shit. These guys aren’t gods.
1) If a CEO makes a company 5% more productive, that's worth millions of dollars.
2) More expensive CEOs aren't better. Indeed, they're often worse. The selection processes are political, corrupt, and wonky.
I could do a better job than the CEO of about half of the organizations I've worked at, /especially/ the larger ones. That's not a comment about me, but about them -- many of my co-workers would have done better than I would. But we never would make it to such a position, because the skills to become a CEO are very different than the skills to run a big company.
If you figure out how to align the two....
Only when he's 5% better (making company 5% more productive) when compared against the next-best CEO available on the market.
There really isn't any objective way to know who the best is, or who the next-best is. If we had a stack rank, it'd be an easy problem.
As organizational structures go, it’s worth sharing.
[1] https://en.wikipedia.org/wiki/W._L._Gore_and_Associates#Cult...
There are many examples with names such as "organizational democracy," "flat" organizations, etc. with examples such as Gore-Tex, Morning Star, etc. Here are a few starting points for you to research (I don't know much about them):
* https://hbr.org/2011/12/first-lets-fire-all-the-managers
Like many, have thought similar about the negative contribution of the growing academic administrative class, in parallel with ridiculously high tuition.
It surprises me, why companies would deviate to organizing themselves as a hierarchy.
Currently,
1. Executive salaries act as a signal of the confidence of the board in their leadership.
2. A successful executive who wants to jump ship can go into a negotiation armed with information about their counterparty's BATNA.